New gTLDs can combine their keyword with the extension to form meaningful, SEO-ready pairs that create a strong brand.
One such domain, Fitness.Coach, is made perfect for an industry ready to shed sweat, tears and money in order to be in shape.
Alas, the associated renewal fee is $1,000 dollars according to its owner, who listed it for sale on Flippa.
Fitness.Coach did not sell for a good amount on Flippa.
Unfortunately, 11 months into its registration, the domain sold for only $84 dollars after 17 bids.
What this means, is that the seller will have to take a substantial loss for his investment.
Perhaps it was part of a larger portfolio of domains, or the initial concept failed to acknowledge the cost of renewing Fitness.Coach without a real brick and mortar business.
And that’s part of the beauty of gTLDs: they are meant to be developed and used. When registering a new gTLD that falls in the premium category, keep that in mind before jumping in.
Premium (and frequently undisclosed on marketplaces) renewal rates for new TLDs is gouging – pure and simple. Let’s hope the market educates the registrars about transparency and reasonable pricing just as Flippa has done in this case. Enough hype about these names already. They may or may not be a great investment in the future but they can cost you dearly in the meantime.
Our industry will continue to be regarded as ‘sketchy’ until spruikers are forced to disclose their vested interests and compensation, and all associated costs are disclosed up front.
Industry hype – Flippa does not require such disclosures up front, it’s in the seller’s best interest to do so, as such questions will pop up. In this case, clearly a premium domain priced accordingly, but failed to sell as it was advertised to the wrong crowd: Investments of this caliber without a real “brick and mortar” plan in mind usually fail as the renewal fees can be steep. Typical domain investors need not apply.